CVS makes $2.8 million early tax payment to help Woonsocket

6/12/2013

CVS makes $2.8 million early tax payment to help Woonsocket

WOONSOCKET – Facing the possibility of not meeting payroll, city officials have asked some of their largest taxpayers to come through with payments early, and CVS Pharmacy has responded, reportedly agreeing to fork over some $2.8 million to Woonsocket ahead of schedule.

Mayor Leo Fontaine contacted the city's top 10 taxpayers last week looking for means to resolve an emergency cash shortage, and reportedly received the check from CVS on Tuesday, June 11.

Finance Director Thomas Bruce said he is still waiting to hear on the status of the mayor's other requests.

"Mayor Fontaine personally worked on this and reeled it in," said Bruce. "CVS responded very quickly and we're very grateful for that."

The tax bill for CVS was not scheduled to go out until the start of July.

The news comes as the Budget Commission considers requesting an advance of $12 million in aid from the Rhode Island Department of Education for the second consecutive year.

Bruce said while the Commission may still seek those funds, the payment was helpful because it's "city money." Funds received from RIDE can technically only be used by schools.

"This is unrestricted in terms of being able to be used by the city for debt," said Bruce.